Kim Kardashian, the boxer Floyd Mayweather and the YouTuber Jake Paul are all three accused of deceiving investors by promoting a cryptocurrency suspected of being an organized scam.
What has Kim Kardashian got to do with cryptocurrency? It seems that hundreds of investors trusted in the American star when she promoted an unknown cryptocurrency called EthereumMax via her social media channels last June. Around the same time, Floyd Mayweather took part in a boxing match with Logan Paul, where EthereumMax was accepted as a means of payment to get sought-after tickets for the event. According to a complaint filed in the US, promotion from the reality TV star and the boxer helped greatly increase the trading volume of the crypto asset.
The complainants claim that investors who bought EthereumMax crypto assets between May 14 and June 17, 2021 all suffered losses because of the influencers' misleading statements. The cryptocurrency has lost 97% of its value since June. This scam strongly resembles a "pump and dump" scheme, whereby scammers drive up the price of a cryptocurrency through misleading messaging before selling it all back to recover much more money.
